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HowtoForge: Chrooted SSH HowTo

"This tutorial describes how to install and configure OpenSSH so
that it will allow chrooted sessions for users. With this setup,
you can give your users shell access without having to fear that
they can see your whole system. Your users will be jailed in a
specific directory which they will not be able to break out of.

"This setup is based on a Debian Sarge (Debian 3.1) system, and
the chrooted SSH will be installed in such a way that it will still
use the configuration files of the standard OpenSSH Debian package
which are in /etc/ssh/, and you will be able to use the standard
OpenSSH Debian init script /etc/init.d/ssh. Therefore you do not
have to create your own init script and configuration file..."